Due to new IRS rules, PayPal has started asking users to provide their tax ID number, which is either your Social Security number, Individual Tax Identification Number or your Employer Identification Number. PayPal says it will use your tax ID number to send tax Form 1099-K to you and the IRS when the payments you receive exceed both of these milestones in a calendar year:

$20,000 in gross payment volume for goods and services 200 payments

So for most occasional PayPal users, this change wont be applicable, but youll still need to enter your tax ID just in case. Although, its important to note that the new law requires PayPals non-US subsidiaries to comply so any non-US account holders may need to certify their non-US status and address. If you dont receive an email from PayPal asking for this, youll be prompted with the following message when you sign into your account.

Started?? Paypal required my SSN ten years ago. Not for that reason but for a dozen others, I think they and all their senior management should be behind bars. Haven't dealt with them in years but have kept an eye on them. Too many offenses to list. Check out an anti-paypal site and read just a sample.

Due to new IRS rules, PayPal has started asking users to provide their tax ID number, which is either your Social Security number, Individual Tax Identification Number or your Employer Identification Number.

14
posted on 08/16/2011 6:50:40 PM PDT
by SunkenCiv
(Yes, as a matter of fact, it is that time again -- https://secure.freerepublic.com/donate/)

If you regularly sell items on online auction sites, you may find yourself on the Internal Revenue Service’s radar. Recent legislation aims to help the IRS collect more taxes from online enterprises, many of which either don’t know about their tax obligations or are ignoring them, according to the agency.

The provision, part of the housing rescue package that President George W. Bush is expected to sign within days, will require PayPal and other processors of online payments to report annual gross receipts to the IRS for all but the smallest online merchants.

I quit Ebay a few years ago. At one time I did fairly well peddling heavy equipment, parts, and salvage cars for relatives. Ebay went all restrictive and super strict on ads coupled with the bigger fees. Once in a while I will look around but haven’t bought anything in ages.

Paypal for my use is to make routine small contributions to some animal rescue charities including one I found out on here a few years back. I have also done a donation to FR.

So I have to put my tax ID or ssn in even though I will not be exceeding $20,000. However, they will probably be able to track my out of state purchases now right? So if I purchased something from another state and didn't put it down on my tax forms, they've got me. Uggg. No more PayPal!

I used to think the bank account link was completely optional. Not so, and many have complained and refuse to use PayPal as a reason. I miss Ebay a little, but not enough to give them that kind of info. — and with the new “IRS” garbage that just cinches the deal for me. Nail in the coffin. I predict Ebay will take a huge hit from this.

Hmmm ... young women frequently share their companionship and perhaps other favors with young (and not-so-young) men in what is apparently an exchange for meals, entertainment, and transportation. This certainly should be a taxable transaction.

Ebay went all PayPal years ago. I thought it was because of the bad checks that buyers were sending.

PayPal also protects buyers from fraudulent sellers. This year I paid $600 for an item and got the run-around from the fraudulent seller (no item and promises of a refund that never came). EBay promptly refunded my money via PayPal after I filed a claim with eBay. Long ago, I used to pay via money order and checks; I doubt I would have got money back if paid by check.

Regardless, I doubt I would sell $20G worth of goods. If the IRS wants tax money from me, I will sell off the grid and stop using eBay.

They do not ask that anymore. You can use them all you want now and only have to give a valid credit card number.

Well then paypal is lying to me.

According to paypal, and they may be lying, you can sign up for paypal with just a credit card, but it's only for a limited time. Then you must become verified and give them access to your bank information or they will no longer process your transactions.

I do not trust paypal. No way would I give them access to any bank account.

No, not at all. I have been a seller on ebay since 1998. Prior to paypal everyone used checks, sent cash or money orders. Maybe two checks bounced in all the thousands I received. The buyers were mortified when notified and always sent a replacement check which a higher amount than owed.

Nothing was ever ‘ lost in the mail ‘ either and I mean nothing. Now, with paypal required and proof always needed for each shipment ( on-line proof ) you would be amazed how many packages just vanish into thin air. A simple “ the package didn't arrive “ email to paypal and they begin the process of freezing the money in your account and eventually giving it to the buyer.

Now ebay is charging sellers a fee on our shipping costs. They claim it is to make sure we sellers don't overcharge people on postage. Another BS reason from ebay - they want us to pick up the postage for the buyer.

>> I agree totally, I wonder what would happen if you enter 999-99-9999.

No, using an SSN like 999-xx-xxxx is commonly done by universities or colleges such as Occidental College for foreign students.

Use 042-68-4425 instead. That one has been confirmed by Social Security Administration as having been never issued.

However, it would be best if you had a history of having lived in Connecticut in March 1977, because other numbers surrounding that one, were issued that month, and applicants who were 12 years old or more at that time had to apply there, in person.

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